Yeah its kind of crazy to me MS didn't just stick to that after the huge success they had with the 360. PS4 basically took the 360 strategy and just swept in and dominated the market.
MS focused too much on what caused the 360 to boom after 2008 instead of looking at the period that caused the 360 to get praise from the audience that buys consoles during the early part of the gen (2005-2008).